GIFT Nifty:

The GIFT Nifty December futures contract is currently up 46.50 points, indicating a positive start for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 1,316.81 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 4,084.08 crore in the Indian equity market on 18 December 2024, provisional data showed.

According to NSDL data, FPIs have bought shares worth over Rs 12,050.61 crore (so far) in the secondary market during December 2024. This follows their sale of shares worth Rs 39315.78 crore in November 2024.

Global Markets:

The Dow Jones index futures were up 97 points, signaling a strong opening for U.S. stocks today.

Asian stocks fell on Thursday, with technology shares leading the decline. This followed the Federal Reserve's decision to cut interest rates by 25 basis points on Wednesday, its third consecutive rate reduction. However, the Fed hinted at fewer rate cuts in 2025 due to persistent inflation and a resilient economy.

Investors are now focused on the Bank of Japan's policy decision later today. Market sentiment is divided over whether the bank will opt for a rate hike or maintain its current stance.

The Fed's rate cut brought the target range to 4.25%-4.50%. While Chair Jerome Powell emphasized that future rate reductions would depend on inflation progress, the central bank's updated economic projections suggest a less dovish stance than previously anticipated. Policymakers now foresee two 25-basis-point rate cuts next year, compared to the four cuts projected in September.

The Fed's projections also indicate that inflation remains above the 2% target. It expects inflation to be 2.4% this year and 2.5% next year. Additionally, the central bank forecasts slightly stronger economic growth and lower unemployment in 2025.

The prospect of higher-for-longer interest rates weighed heavily on Wall Street on Wednesday. Technology stocks bore the brunt of the sell-off, with NVIDIA, Tesla, Intel, and Broadcom experiencing significant declines.

The S&P 500 fell 3%, the NASDAQ Composite dropped 3.6%, and the Dow Jones Industrial Average declined 2.6%. The Dow's 10-day losing streak is its longest since 1974.

Domestic Market:

The key equity benchmarks plummeted for the third consecutive day on Wednesday. Investors were cautious ahead of the US Fed Reserve's interest rate outcome due later in the day. Persistent FII selling also dampened investor sentiment. The Nifty index closed below the 24,200 mark, despite touching an intraday high of 24,394.45 earlier in the session. PSU bank and metal stocks bore the brunt of the selling pressure, while pharmaceutical and healthcare sectors displayed relative resilience. The S&P BSE Sensex dropped 502.25 points or 0.62% to 80,182.20. The Nifty 50 index lost 137.15 points or 0.56% to 24,198.85. The 50-unit index is down 2.30% in three sessions.

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